Royal Oak Ventures Inc.

December 08, 2010 16:51 ET

Royal Oak Announces Third Quarter Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2010) - Royal Oak Ventures Inc. ("Royal Oak" or the "company") reported net income for the three months ended September 30, 2010 of $6.1 million compared to a net loss of $0.2 million for the comparative period in 2009. Net income in the current quarter included a $4.9 million gain on the disposal of certain securities held in the company's investment portfolio. Net income per common share was $0.04 compared with net loss per share of $nil per common share during the same period in the prior year.

Interest, dividends and other income totalled $2.0 million for the three months ended September 30, 2010, in comparison to $0.7 million in the same period in 2009 and consisted principally of interest and dividends earned on the company's securities portfolio. The increase in investment income for the quarter ended September 30, 2010, is the result of a $1.7 million special distribution received from a security within the investment portfolio. In the third quarter of 2009, the Company used its cash and short-term deposits to repay a signifi cant portion of its outstanding debt balances. As a result, interest expense incurred on the outstanding debt for the third quarter of 2010 is lower than the comparable quarter of 2009.

Statements of Operations
 
    Three months ended     Nine months ended  
        September 30         September 30  
(Thousands, except per share amounts)   2010     2009     2010     2009  
Revenue                        
  Investment and other income $ 1,999   $ 671   $ 2,796   $ 2,548  
  Investment gains   4,933         4,933      
    6,932     671     7,729     2,548  
Expenses                        
  Operating expenses   332     422     704     1,111  
  Interest expense   179     1,335     535     7,523  
    511     1,757     1,239     8,634  
    6,421     (1,806 )   6,490     (6,086 )
Foreign currency revaluation   (47 )   773     608     9,411  
Income before income taxes   6,374     (313 )   7,098     3,325  
Future income tax (expense) recovery   (260 )   77     (248 )   (160 )
Net income (loss) $ 6,114   $ (236 ) $ 6,850   $ 3,165  
Net income (loss) per share $ 0.04   $   $ 0.04   $ 0.02  
 
 
Statements of Total Return
               
  Three months ended   Nine months ended
  September 30   September 30
(Thousands)   2010     2009     2010     2009
Net income $ 6,114   $ (236 ) $ 6,850   $ 3,165
Unrealized (loss) gain on securities   (1,987 )   2,281     (1,910 )   4,684
Total return $ 4,127   $ 2,045   $ 4,940   $ 7,849
 
 
Balance Sheets
     
  (unaudited)  
  September 30 December 31
(Thousands) 2010 2009
Assets        
 Cash and cash equivalents $ 9,023 $ 1,637
 Marketable securities   25,181   31,980
 Accounts receivable   226   554
    34,430   34,171
Loans receivable   4,267   4,235
  $ 38,697 $ 38,406
         
Liabilities and shareholders' equity
Current liabilities        
 Accounts payable and accrued liabilities $ 3,202 $ 2,960
 Short-term debt     4,891
    3,202   7,851
Shareholders' equity   35,495   30,555
  $ 38,697 $ 38,406

Subsequent to the fi ling of the interim results for the period ended September 30, 2010, the Company will be up to date on all outstanding fi lings. The Company is currently taking steps to remove the cease trade order issued on the previously listed shares and is seeking a new listing on the TSX Venture Exchange.

Contact Information

  • Royal Oak Ventures Inc.
    Derek E. Gorgi
    Vice-President Finance
    (416) 359-8590